We are building The Matrix in the transport industry

Digitization of the
transport industry
We are building The Matrix
!
!

Per Olof Arnäs
Chalmers

@Dr_PO
per-olof.arnas@chalmers.se
about.me/perolofarnas

The Transport
industry

3 things:

Per Olof Arnäs

Carbon-free transport by Stéfan on Flickr

…physical
3d boxes by crystaljingsr on Flickr

…public

CC-‐BY
Per
Olof
Arnäs

Technology
Management
and
Economics

Logis4kcs
and
Transporta4on

Traffic Jam by Giorgio Minguzzi on Flickr

…analogue

542 miles by Jason on Flickr

CC-‐BY
Per
Olof
Arnäs

Technology
Management
and
Economics

Logis4kcs
and
Transporta4on

CC-‐BY
Per
Olof
Arnäs

Technology
Management
and
Economics

Logis4kcs
and
Transporta4on

1989

CC-‐BY
Per
Olof
Arnäs

Technology
Management
and
Economics

Logis4kcs
and
Transporta4on

1989

Map on the wall with pushpins

Delivery notes
(3 carbon sheets)

Radio
Telephone

Pens in various
colours

CC-‐BY
Per
Olof
Arnäs

Prices, phone
numbers etc.

Technology
Management
and
Economics

Logis4kcs
and
Transporta4on

Calculator
Cardfile of
customers, tank
sizes etc.

1989
Ca 100 customers
in west Sweden
6 tanker trucks
(7 partitions per vehicle)

Products:
Gasoline 95
Gasoline 96
Gasoline 98
Diesel
Diesel, colored

8-10 Pricing (yesterday’s orders)
10-12 Call and receive tomorrow’s orders
13-17 Planning

A FULL TIME JOB!
CC-‐BY
Per
Olof
Arnäs

Technology
Management
and
Economics

Logis4kcs
and
Transporta4on

The Internet first became available for
Swedish consumers around 1993

+

=

A (bad and expensive) mix between
Teletext and the Yellow Pages

Not very pretty

Few people with
computers

15 years later, in 2008, Google Flu
Trends was launched
Based on what
people google and
where their
computer is located
www.google.org
Ten days ahead
of the official flu
tracker

How
will
we
use
the
technology
in
10
years?
lm
a

st
o

We have no idea.
!

The girl and the iPad by Niclas Lindh on Flickr (CC-BY)

How
will
we
use
the
technology
in
10
years?
lm
a

st
o

We have no idea.
!

...and neither does she,
but she will be dissatisfied
with stuff that we think are
pure science fiction and
almost magic.


Development of transportation
technology has been
fairly linear
…for the last 5500 years
Per Olof Arnäs

Stage Coach Wheel by arbyreed on Flickr

inning
beg

We are in the middle of a gigantic
exponential development curve

A new global eco system where new
types of, knowledge based, industries
compete with traditional ones

Startups don’t

compete with airlines...

by purchasing a bunch of
hiring a bunch of
and locking up a bunch of

planes
pilots
terminals at airports.

Miniature Airport by disparkys on Flickr
http://bryce.vc/post/18404303850/the-problem-with-innovation

Startups don’t

compete with airlines...

by purchasing a bunch of
hiring a bunch of
and locking up a bunch of

planes
pilots
terminals at airports.

Startups compete with airlines by
inventing videoconferencing.
Miniature Airport by disparkys on Flickr (CC-BY,SA)
http://bryce.vc/post/18404303850/the-problem-with-innovation

Physical flow

Original? Copy?
Ownership
Consignor

Consignee

In Search Of Lost Time by bogenfreund on Flickr

The biggest problem in
transportation is time.
There is not enough of it.
Ever.

So…

What are we
doing about
all this?

Time horizons
Strategic

Tactical

Operational

Prognosis

Realtime!

We are approaching
this boundary

…and we are
starting to
move past it!

Digitization fronts
Goods

Vehicle

Business
process

Infrastructure

Digitization fronts
Goods

Vehicle
Order handling

Driver support

Vehicle economics

Barcodes

RFID

Sensors

ERP systems

TMS systems

E-invoices

Cloudbased
services

RDS-TMC

Road taxes

Active traffic support

Business
process

Infrastructure

ata

s
gn

be d

si
d
Ro
a

S

Pro

ed
as
rb

Pa
pe

D
R

Route
optimisat
ion

ing

n
too
Pla

2.0

M
Mu ash
up
lti
so ple d s 
urc at
es a

na
vi
fo
r
PS
G

es
rvic ata
se
Web raf fic d
t
with

ng
lli ms
To ste
sy

Dy
n
ro am
uti ic
sy
ste ng
ms

ga
tio

l

Ex
c
ha eptio
nd
lin ns
g

1.5

n

RF
ID tag
s

ec
fr tro
ei n
gh ic
t d ally
oc g
um en
e
Pa
en ra
pe
ts ted
rb
as
ed

Di
s
de tribu
ma cisio ted
kin n
g

Sma

El

ce
Ex

W
e
bo b ba
ok se
in d
g

nce
Performa
cess
Based ac

ail

pl Rou
an te
ni
ng

g

e
gu
lo ls
na oo
t

A

E-m
STM ms
te
sys

Fax

e

oic
inv

E-

ity

tiv

ec
nn
co
en
Op
eb
cial w

ion
icat
mun les
Com h vehic
wit

o
The s

In
pr teg
og ra
no ted
si
s

1.0

ni n

0.5

too
Pla

e 
on rs
Ph ape
P

0

n
ctio
olle
a c tems )
y
Dat
sys rietar
op
( pr

are
rdw d
Ha iente
or

Manual

UI

Computers

d
se

Sim
p
han le ord
dlin er
g

Digitization version

Business
processes

Pl
a
ba tfo
sy s r
st ed m
em
s

B

Vehicle

Perfor
Based mance
acces
s

Software

l
ue n
r f tio
ito p
on um
M sn
co

rt g
ood
s

Adv
anc
han ed ord
dlin
er
g

ba

es

d
co
ar

co Da
sy llec ta
s t
(o tem ion
pe s
n)

eb
W

bi
s al
a
ds tion nk
oo c li
G ire er
d yp
h

Goods

O
int pen
erf
ac
e

Functions

l
ua
id
iv ting ion
d
In rou at
rm
fo
in

Infra-

structure

CC-BY Per Olof Arnäs, Chalmers

What happens
when access to
real-time data
increases?

Strategic

Tactical

Operational

Prognosis

Infrastructure

Business
processes

Vehicles

Goods
not quite clear on the concept by woodleywonderworks on Flickr (CC-BY)

What would happen if a pallet had
a Twitter account?

Probably nothing.
Well, that was not exactly true…

140 characters

Hyperlinked
@-names

Realtime
Hyperlinked
#-tags

Unilateral
subscription
Automagical
geocoding

Reference
trigging event

Hyperlinked

When the shipment passes a reader, the
message is sent automatically

When the shipment passes a reader, the
message is sent automatically
The shipment
reports often

Whoever is interested
can keep track

Association is done in realtime and is
reported instantly

Association is done in realtime and is
reported instantly
The shipment is
associated with Vehicle 18
and Shipment 2345

If you subscribe to
one, you subscribe
to all of them

But… does this mean that all pallets will
have onboard computers now?

No, of course not.

No, of course not.
It is enough that it has a digitally
readable identity, like a RFID tag

No, of course not.
It is enough that it has a digitally
readable identity, like a RFID tag
All logic is located in the reader

Su

Su

bs

bs

cri

cr

Subscrip

ine
b

ip

pti

tio

n

on

tion

m
Co

M

as

hu

Create value

p

Rem
ix

ion
ipt

scr
ub

SETI by Paulo Alegria on Flickr

S

My
own
data

ub
Su
bsc
sc r
ub
riip
scr pAti
ip oon
n

tio

n
scription
ion
ipt

Publish

PubSub

This is not a social media megaphone
by mikael altemark on Flickr


scr
b

ub
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bsc
sc r
ub
riip
scr pAti
ip oon
n

tio

n
scription
ion
ipt

scr
b

der
r

O

info

Cust
omer
infor
matio
n

Vehic
l

e/Ves

sition y
el po
ilit
/Vess
hicle
e
sab
V
es
cc
ya
ilit
ac
F

Operational data, not secret
Secret data

PubSub

sel E

TA



Publish

tion
rma

ub
Su
bsc
sc r
ub
riip
scr pAti
ip oon
n

tio

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scription
scr

ion
ipt

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Publish
Publish

Publish

Publish

Secret data

PubSub



Publish

ub
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ub
riip
scr pAti
ip oon
n

tio

n
scription
ion
ipt

scr

b

Publish
Publish

Publish

Publish
Publish


New data

Combine

Secret data

PubSub


Subscribe

Dialogue between
vehicle and
infrastructure

Footprinting

Increase efficiency by
sharing data



Benefits in transportation

Dialogue between vehicle
and infrastructure
Access control
Journey
planning data

CC-‐BY
Per
Olof
Arnäs

Probe data

Graphic Conversation by Marc Wathieu on Flickr

Footprinting

Energy use
Environmental

Economical
Infrastructure use
...and 100! by MarcelGermain on Flickr

Increase efficiency
by sharing data
Bottle-neck planning

Optimize infrastructure use

CC-‐BY
Per
Olof
Arnäs

Matchmaking

Optimize vehicle use

Gartners Hype Cycle for Emerging Technologies

Augmenting
humans with
technology

Machines
better
understanding
humans and
the
environment

Machines
replacing
humans

Humans and
machines
working
alongside each
other

Humans better
understanding
machines

Machines and
humans
becoming
smarter

Source: Gartner August 2013
http://www.gartner.com/newsroom/id/2575515

Transportation/
logistics?

?


bi
s al
a
ds tion nk
oo c li
G ire er
d yp
h

co Da
sy llec ta
s t
(o tem ion
pe s
n)

Some trends that we are
very interested in
ed
as
rb
Pa
pe

D

M
Mu ash
up
lti
so ple d s 
urc at
es a

na
vi
fo
r
PS
G

Dy
n
ro am
uti ic
sy
ste ng
ms

ga
tio

n

R

2.0
Perfor
Based mance
acces
s

ec
fr tro
ei n
gh ic
t d ally
oc g
um en
e
Pa
en ra
pe
ts ted
rb
as
ed

RF
ID tag
s

Sma

El

S

Pro

be d

s
gn
si
d
Ro
a

ata

1.5

l
ua
id
iv ting ion
d
In rou at
rm
fo
in

Locals and Tourists #1 (GTWA #2): London by Eric Fischer on Flickr

ing

n
too
Pla

nce
Performa
cess
Based ac

3D Printing

Route
optimisat
ion

g

l

es
rvic ata
se
Web raf fic d
t
with

ng
lli ms
To ste
sy

ni n

ce
Ex

pl Rou
an te
ni
ng

Ex
c
ha eptio
nd
lin ns
g

too
Pla

e
gu
lo ls
na oo
t

ail

STM ms
te
sys

In
pr teg
og ra
no ted
si
s

1.0

Big data

Fax

W
e
bo b ba
ok se
in d
g

n
ctio
olle
a c tems )
y
Dat
sys rietar
op
( pr

e 
on rs
Ph ape
P

0.5

e

oic
inv

E-

ity

tiv
Ora by cskk on Flickr (CC-BY)

0

A

E-m

ion
icat
mun les
Com h vehic
wit

ec
nn
co
en
Op
eb
cial w

o
The s

Wearable tech

are
rdw d
Ha iente
or

Manual

UI

Computers

d
se

Sim
p
han le ord
dlin er
g

Digitization version

Business
processes

Pl
a
ba tfo
sy s r
st ed m
em
s

B

l
ue n
r f tio
ito p
on um
M sn
co

rt g
ood
s

Software

Vehicle

ba

Adv
anc
han ed ord
dlin
er
g

eb
W

es

d
co
ar

Di
s
de tribu
ma cisio ted
kin n
g

Goods

Lisa for I/O Keynote by Max Braun on Flickr (CC-BY)

O
int pen
erf
ac
e

Functions

Infra-

structure

CC-BY Per Olof Arnäs, Chalmers

Wearable tech

Lisa for I/O Keynote by Max Braun on Flickr (CC-BY)

We are becoming cyborgs

More than just
entertainment

Physical interaction with
the digital eco system

3D Printing
Additive manufacturing
Batch of one
Flexible
Expensive

Ora by cskk on Flickr (CC-BY)

We produce vast
amounts of data


All the time.


So what can we
do with all this
data?


Waze is based on the fact that everybody running the app
automagically delivers data. No central ”traffic control”!

rced
dsou ap
row
C
nd m
ic- a
raf f
t
ata
d

Exa
mp
sha le of
ring dat
tha a
wo
rks t

Man
com y-to-m
mu
any
nic
atio
n

or
f
ee ers
Fr um
ns
co

Data layers that could be
applied in freight

city
apa

C

dar
ra

ETA
pro
jec
tion
s

Mat

chm

akin

ck
ne
tle s
ot tu
B ta
s

g

t
a
iz

it
ig

D

n
io

Incre
asing
good
s volu
mes

Opportunities
New
techn
olog

y

al
tic
oli
P
st
re
te
in
Quad Aces by fitzsean on Flickr

Northern LEAD  
Logistics Research Centre
Founded by:
Chalmers University of Technology
University of Gothenburg
Logistics and Transport Society LTS

What we do
Northern LEAD coordinates and supports logistics
research at Chalmers and University of Gothenburg
in order to increase volume, quality and  
relevance of the research

stairs by Denis Jacquerye on Flickr

Tomorrow’s logistics. We are finding the answers.
Around 70 researchers

Five core research
groups

Collaboration between
Chalmers and University
of Gothenburg

Research centre for
sustainable logistics
solutions
Organises, facilitates,
disseminates highly
relevant logistics
research

Five core
research groups
Industrial marketing
& purchasing
Logistics &
Transport
Physical
Distribution
Professors
Visiting Professors
Associate Professors
Post docs
Faculty
PhD students
Total

10
6
5
6
14
32
73

Production
Logistics
Optimization

Challenges
and trends
Environmental
impact

Focused areas
Logistics and Production Networks

Outcomes for
policy and
business

Long Distance Transport
Resource
limitations
Urban Transport
Demographic
changes
Manufacturing
and retail
revolution
Complexity and
structural
flexibility

Volatility and risk

Purchasing of
transport

Information,
planning and
control

Service
development in
networks

Intermodality

Resource
utilisation

Measurements
and measuring

Thought leadership
through
high quality
research and
innovation

Project proposal:
Smart access/guidance control

haring
Data s

Exp
del andi
iver
ng
y fr
ont
ic
am uts
yn tc
D or
sh

Foliate
d
transp
ortatio
n
netwo
rk

nd by
Sta
ents
shipm
S

me
o

r
he
ot

Realtime
applications
nt V2I
Intellige
ication
ommun
c

Super Cat by Photo Extremist on Flickr

oon
lat g
P
kin
par

Not everyone will want
to adopt new things…

From order to invoice
Basic data

From/To/What/When
Owner: the customer

Resource allocation

What vehicle? 
Owner: Traffic controller

Cargo information
Loaded amount
Owner: Supplier

Proof of Delivery

Time/date/signature
Owner: Driver

Pricing

Owner: Financial dept.

Enough information to create invoice

All of these steps cost money!

An increase in the number of
orders lead to increased cost
Total cost for
administration of
all orders

Goal: De-couple the
dependecy between
administative cost and
order volume

Handle exceptions –
not transactions!

Number of orders per year

2 hours
4 hours

2 hours

1989:A FULL TIME JOB!
CC-‐BY
Per
Olof
Arnäs

Technology
Management
and
Economics

Logis4kcs
and
Transporta4on

0 hours
1-2 hours

0 hours

2013: TWO HOURS. MAX.
CC-‐BY
Per
Olof
Arnäs

Technology
Management
and
Economics

Logis4kcs
and
Transporta4on

How
will
we
use
the
technology
in
10
years?
so

e
m

We have no idea.
!
!
Per Olof Arnäs
per-olof.arnas@chalmers.se
about.me/perolofarnas
@Dr_PO
Slides published on slideshare.net/poar


Exklusiv förhandsvisning av ny design som kommer inom kort!
Exclusive preview of the new design that will be released shortly!

Kolla gärna in min
crowdsourcade
logistikblogg
Logistikfokus.se
(Sveriges första och
troligtvis enda)
Be sure to check out my crowdsourced
logistics blog Logistikfokus.se
(Sweden’s first and probably the only
one)
Yes, It’s in Swedish but Google Translate
works wonders these days ;-)

We are building The Matrix in the transport industry

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We are building The Matrix in the transport industry